Lady U. Altamond? Boland, a steampunk? enthusiast, acquired $11,000 worth of? TopHatz“R”Us bonds a month ago? (i.e. $11,000 was the face? value) which is going to mature in 25 years with 2% return every three months? (i.e. nominal interest rate per year is 8?%, and Lady Boland is sent a $220 check every? quarter). However, comparable securities have seen their interest rate increase to 12?% since. Compute the current value of bonds in Lady? Boland’s possession under the light of the interest rate increase to 12%.
Please use excel functions and show formulas for calculations.